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A company spokesman said: "We are working to redeploy as many people as possible into alternative roles but redundancies will be inevitable."

HMV has been saved from administration by Canadian retailer Sunrise Records (Image: Getty Images)

The news comes amid a crackdown on rent-to-own retailers after the Financial Conduct Authority found 400,000 people were paying an extra £23million a year on goods such as TVs and fridges due to overpricing and excessive interest charges.